U.S. Stocks May See Initial Strength On Election Day

After ending the previous session mostly higher, stocks are likely to see further upside in early trading on Tuesday. The major index futures are pointing to a higher open for the markets, with the Dow futures up by 393 points.

The upward momentum on Wall Street comes as traders seem to be hoping for a definitive outcome from today’s presidential election.

Democratic candidate Joe Biden holds a clear lead in national polls and is also leading in several key swing states in the race to defeat President Donald Trump.

Traders seem optimistic that the results of the election will be known at the end of the night without the need for lawsuits and recounts.

Trump has repeatedly raised questions about the legitimacy of mail-in ballots and has not committed to a peaceful transition of power.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on new orders for manufactured goods in the month of September. Factory orders are expected to jump by 1.0 percent.

U.S. stocks ended on a buoyant note on Monday, as bargain hunting after recent sharp losses and a report showing another acceleration in U.S. manufacturing activity pushed up prices.

Encouraging economic data from China and the euro zone also helped outweigh concerns about rising coronavirus cases and fresh lockdown measures as well as uncertainty about the outcome of the presidential election.

The major averages all ended notably higher. The Dow surged up 423.45 points or 1.6 percent to 26,925.05, the S&P 500 moved up 40.28 points or 1.2 percent to settle at 3,310.24 and the Nasdaq firmed up 46.02 points or 0.4 percent to 10,957.61.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday, although the Japanese markets were closed. China’s Shanghai Composite Index jumped by 1.4 percent, while Hong Kong’s Hang Seng Index surged up by 2 percent.

The major European markets have also shown strong moves to the upside on the day. While the German DAX Index has spiked by 1.9 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 2.1 percent.

In commodities trading, crude oil futures are surging up $1.22 to $38.03 a barrel after jumping $1.02 to $36.81 a barrel on Monday. Meanwhile, after climbing $12.60 to $1,892.50 an ounce in the previous session, gold futures are rising $15.80 to $1,908.30 an ounce.

On the currency front, the U.S. dollar is trading at 104.68 yen compared to the 104.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1703 compared to yesterday’s $1.1641.

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